FAVRAT CONSTRUCTION BOIS : revenue, balance sheet and financial ratios

In 2025, FAVRAT CONSTRUCTION BOIS achieves revenue of 16.9 M€. Over the period 2016-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +5.3%. Significant drop of -15% vs 2024. After deducting consumption (6.7 M€), gross margin stands at 10.2 M€, i.e. a rate of 60%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 828 k€, representing 4.9% of revenue. Warning negative scissor effect: despite revenue change (-15%), EBITDA varies by -49%, reducing margin by 3.2 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 372 k€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 43%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 48%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 255.80. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 7.2x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 72 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 62 days. The company must finance 10 days of gap between collections and payments. Inventory turnover is 28 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 94 days of revenue, i.e. 4.4 M€ to permanently finance. Over 2016-2025, WCR increased by +94%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of FAVRAT CONSTRUCTION BOIS is estimated at 1 919 348 € (range 998 100€ - 3 139 546€). With an EBITDA of 828 202€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.16x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.